March 29, 2007
So, here we are several months after the Reg SHO Revisions comment period was to have ended, and the SEC has done nothing.
Do you people at the SEC know we citizens expect you to actually police the market and enforce the securities laws passed by Congress? In case you don't know, that is what you are supposed to be doing. I can not imagine why you are not doing it.
The SEC Acts of 1933 and 1934 require the SEC to protect investors and ensure prompt clearance and settlement of trades.
Yet, significant numbers of trades fail to settle properly. Thanks for documenting this on the Threshold List, but we are kinda curious when you are going to do something about it.
We have heard the defense that it's a small percentage of the trades. We don't buy it.
If it's 1% of the trades and it is not concentrated, it's 1% dilution of the value of all issues.
If it's 1% of the trades but it's concentrated in 10% of the issues, it's 10% dilution of the value of the issues in question.
If it's 1% of the trades but it's concentrated in 1% of the issues, it's 100% dilution of the value of the issues in question.
If it's 1% of the trades but it's concentrated in 0.1% of the issues, it's 1000% dilution of the value of the issues in question.
And so on.
The Prime Brokers, market makers and hedge funds know how to designate a target and hammer the price per share. We knew that even before Cramer blurted it out on TheStreet.com.
Chairman Cox, settle the trades.
The Prime Brokers are playing you for a fool. Are you a fool? I certainly hope not.